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PacSun Q1 Revenues Off 16.2%

PacSun beats earning guidance despite posting declining same-store sales of 18% percent for the first quarter and a loss of $8.7 million.

mike lewis

• May 21 2009 | 475 views | 3 comments

• Features
• News
• financial news

PacSun Releases 10-K

Publicly traded companies are required to provide investors with year-end results. These things generally come in the form of a 10-K statement. Reading one of these documents is slightly more fun that swallowing a handful of thumb tacks, but there’s a ton of information jammed in there about the respective company’s performance over the past few years. In this case, we’re talking about Pacific Sunwear Of California, Inc.

josh hunter

• April 01 2009 | 532 views | 1 comment

• News

Adrenalina Criticizes PacSun Performance; Calls For CEO’s Resignation

Adrenalina announced Wednesday, February 12, that it has nominated four director candidates for election to the Pacific Sunwear board, according to an article published on Businesswire.com. Adrenalina also sent a letter to PacSun Chairman and CEO Sally Frame-Kasaks, calling the company out for not accepting Adrenalina’s offer to buy the company at $5 per share, and for ignoring its pleas to discuss ideas for enhancing shareholder value, according to the report. Adrenalina owns 2,097,313 shares in the aggregate, or approximately 3.2% of PacSun’s shares. The letter also calls for Frame-Kasaks’ immediate resignation. Here’s a direct excerpt from the letter, as published on Businesswire.com:

“For a Company whose focus is on “cost reduction actions,” we note that you continue to handsomely reward yourself with compensation. You conveniently say that the Company needs to “be prudent” in managing its costs. Why haven’t you reduced your take-home salary significantly? We were not surprised to see management and the Board take such a self-serving position, considering the ease with which management has generated cost savings by eliminating a vast number of corporate positions while presumably leaving its own bloated compensation intact. As an example, we note that your compensation in 2007 was over $3 million, more than 60% of the estimated savings achieved by the Company’s recent elimination of 47 positions at its Anaheim headquarters and 10 field management positions. This Board and management team collectively own just over 1% of the outstanding shares and therefore have no significant ownership stake. Clearly, while stockholders have suffered mightily, the wallets of this Board and management team with little “skin in the game” have gotten fatter. ”

Read the entire press release and letter HERE.

ADMIN

• February 12 2009 | 1,066 views | 18 comments

• News

PacSun December 2008 Comps Down 9%

Pacific Sunwear, Inc., released it’s December 2008 sales results for the five weeks ended Jan. 3 , reporting a decrease of nine percent from total PacSun sales of $214.4 million during the same period last year, according to a press release published on the company’s Investor Relations site.

“This compares to its previous expectation of inventories down at least high-single digits at the end of fiscal 2008. Due in part to the increased promotions and anticipated further markdown reserves, and assuming a same-store sales decrease in the mid-teens range for the month of January, the Company now expects to report a fiscal 2008 fourth quarter net loss of $0.38 to $0.43 per diluted share, including an estimated gain of approximately $0.10 per diluted share from the previously-announced sale of the Company’s Anaheim distribution center. Approximately $0.19 of the fiscal fourth quarter loss is attributable to markdown reserves. The Company also now anticipates ending fiscal 2008 with cash balances of between $15-20 million and no direct borrowings under its $150 million credit facility.”

To read the full report, click HERE.

ADMIN

• January 08 2009 | 275 views

• News

Adrenalina Continues Push To Buy PacSun Shares

Starting in October 2008, Adrenalina put an offer out to acquire Pacific Sunwear for $4.50 per share. PacSun declined to participate in any such discussions. Now, several months later, Adrenalina continues to push the issue, according several stories published this morning.

Here’s an excerpt from a letter Adrenalina included in a press release the company issued today. The letter is addressed to to PacSun’s Chairman and CEO, Sally Fram Kasaks, and was published today at Marketwatch.com. The letter requested that PacSun’s board of directors meet with Adrenalina representatives to discuss merging the two companies:

“We believe the experience of our management team at Adrenalina working with PacSun will allow us to capitalize on several important business synergies, including a combination of PacSun’s substantial store footprint with our proven entertainment retailing concept, and create a more efficient and competitive company that is better equipped to deliver value in this challenging economic environment.”

Read the entire letter HERE.

ADMIN

• December 15 2008 | 219 views | 4 comments